The annual rate of inflation based on the All India Wholesale Price Index (WPI) stood at 3.88% (provisional) in March 2026, marking a notable increase from 2.13% in February 2026. The rise in headline WPI inflation was primarily driven by higher prices of crude petroleum & natural gas, manufactured products, non-food articles, and basic metals, indicating a broad-based uptick in wholesale price pressures.
“The sharp increase in WPI inflation in March 2026 over March 2025 reflects a more broad-based strengthening in price momentum driven by a jump in energy-related components and manufactured products, alongside a reversal of earlier softness in key primary commodities, said Mr. Rajeev Juneja, President, PHDCCI.”
On a sequential basis, the WPI index (All commodities) recorded a month-on-month increase of 1.64% in March 2026, compared to 0.38% in February 2026, suggesting a sharp acceleration in price momentum during the month, he added.
At the major group level:
- Primary Articles (weight: 22.62%) registered inflation of 6.36%, with a strong month-on-month increase of 2.28%, largely led by a sharp rise in crude petroleum & natural gas prices.
- Fuel & Power (weight: 13.15%) turned positive at 1.05%, compared to negative inflation in preceding months, reflecting a jump in energy prices due to geopolitical tensions.
- Manufactured Products (weight: 64.23%) recorded inflation of 3.39%, indicating sustained cost pressures in industrial goods, with 16 out of 22 groups witnessing price increases.
The WPI Food Index remained stable at 1.85% (YoY), with the index declining marginally from 192.9 in February to 192.8 in March, reflecting mixed trends within food components.
The overall WPI index rose to 160.8 in March 2026, up from 158.2 in February 2026, indicating a significant sequential increase in wholesale prices.
Outlook
“Wholesale price dynamics are likely to remain sensitive to global commodity trends, particularly energy prices, while domestic manufacturing cost pressures due to supply-side factors may continue to influence near-term inflation paths said Dr. Ranjeet Mehta, SG and CEO, PHDCCI.”
